LANCASTER, Pa. - Fulton Financial (NASDAQ:FULT) Corporation (NASDAQ: FULT), a Pennsylvania-based financial holding company, announced today the appointment of Richard Kraemer as Senior Executive Vice President and Chief Financial Officer. Kraemer will take over the role from Betsy Chivinski, who has served as Interim CFO and is set to retire at the end of this year.
Kraemer brings over two decades of experience in the financial services industry to his new position at Fulton. His previous roles have included Chief Banking Officer and Executive Vice President, where he managed profit and loss for commercial markets and led corporate treasury and finance functions, respectively. Kraemer's educational background includes a Bachelor of Science in Finance from Fordham University's Gabelli School of Business.
In his new role, Kraemer will be responsible for a broad range of financial operations at Fulton, including accounting, treasury, corporate development, tax, financial planning and forecasting, investor relations, procurement, and real estate.
Curt Myers, Chairman and CEO of Fulton, expressed confidence in Kraemer's abilities to contribute to the company's future success, citing his track record in leading commercial lines of business and developing strategies to enhance profitability.
Fulton Financial Corporation operates over 200 financial centers across five states and employs more than 3,500 people, with assets exceeding $30 billion. The company's extensive footprint in the financial sector is anchored by Fulton Bank, N.A., and it provides a wide array of banking and financial services.
The transition in CFO leadership comes after Chivinski's instrumental role in significant transactions for Fulton, including the Republic Bank deal and the issuance of common stock. Myers thanked Chivinski for her service and contributions to the company.
This leadership change is based on a press release statement from Fulton Financial Corporation.
In other recent news, Fulton Financial reported strong third-quarter 2024 results, with record operating earnings of $0.50 per diluted share and an operating net income of $91.3 million. This performance was largely driven by significant loan and deposit growth following the integration of Republic Bank. Total deposits increased by $745 million, marking a 12% annualized growth, and net interest income rose by $16 million to reach $258 million. Additionally, the company's Wealth Management revenues reached a record $21.6 million.
Piper Sandler maintained a Neutral rating on Fulton Financial, highlighting that the company's core earnings per share (EPS) of $0.47 surpassed estimates. DA Davidson also maintained a Neutral rating, noting Fulton Financial's pre-provision net revenue (PPNR) outperformance, driven by stronger net interest income (NII) and core fees. However, both firms highlighted concerns about operating expenses and weaker NII for the fourth quarter of 2024.
Fulton Financial anticipates annual recurring savings of over $50 million by 2026, largely attributed to the integration of Republic Bank. The company projects to achieve 40% cost-savings from this acquisition by January 2025. It also expects net interest income for 2024 to be between $925 million and $950 million, and non-interest income to be between $240 million and $260 million. However, the company also anticipates a municipal deposit runoff of about $300 million in the fourth quarter.
InvestingPro Insights
As Fulton Financial Corporation (NASDAQ: FULT) welcomes Richard Kraemer as its new CFO, investors may find additional context from recent financial data and expert insights valuable. According to InvestingPro, Fulton's market capitalization stands at $3.28 billion, with a price-to-earnings ratio of 11.32, suggesting a relatively modest valuation compared to some peers in the financial sector.
The company's revenue growth is noteworthy, with a 17.66% increase in the most recent quarter, indicating positive momentum that the new CFO will aim to maintain. This growth aligns well with Kraemer's background in managing commercial markets and developing profitability-enhancing strategies.
InvestingPro Tips highlight Fulton's commitment to shareholder returns, noting a high shareholder yield and an impressive 43-year streak of maintaining dividend payments. This consistency in dividends, coupled with a current dividend yield of 3.75%, may be attractive to income-focused investors and reflects the company's financial stability—a key factor as Kraemer takes the financial helm.
However, it's worth noting that Fulton suffers from weak gross profit margins, according to another InvestingPro Tip. This could be an area where Kraemer's experience in treasury and finance functions might be particularly valuable as he works to improve the company's financial performance.
For investors seeking a deeper understanding of Fulton's financial position, InvestingPro offers 21 additional tips, providing a comprehensive analysis to inform investment decisions.
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